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Corporate Ethical Issues

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Labor Practices and Human Rights

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Companies face ethical issues regarding fair wages, humane working conditions, and the right to unionize. Example: Sourcing materials from suppliers that use child labor or have poor working conditions.

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Truth in Advertising

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Truth in advertising refers to the ethical principle that demands advertisers to be honest with consumers and avoid misleading information. Example: Exaggerating product benefits or hiding potential side effects.

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Use of Corporate Resources

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The ethical use of corporate resources touches upon avoiding the wasteful, extravagant, or unauthorized use of a company's assets. Example: An employee uses company property for personal benefit.

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Workplace Discrimination

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Workplace discrimination is the unfair treatment of employees based on race, gender, religion, national origin, physical or mental disability, or age. Example: Preferential hiring or promotions based on demographics rather than merit.

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Bribery and Corruption

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Bribery involves offering, giving, receiving, or soliciting something of value as a means of influencing an action. Corruption can entail a wide range of misconducts including bribery. Example: Offering money to a government official to win a public contract.

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Responsibility to Shareholders

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Companies have a duty to act in the best interest of their shareholders, which can create dilemmas when it conflicts with other ethical considerations. Example: Choosing between shareholder profits and ethical operations.

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Corporate Social Responsibility

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Corporate social responsibility (CSR) refers to a company's initiative to assess and take responsibility for its effects on environmental and social wellbeing. Example: A company is using CSR as a marketing ploy rather than genuinely engaging in sustainable practices.

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Environmental Responsibility

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Environmental responsibility refers to a company's duty to minimize their impact on the environment. Ethical dilemmas arise when companies choose profit over environmental sustainability. Example: Disposing of waste in a manner that saves costs but harms the environment.

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Intellectual Property Rights

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Ethical issues around intellectual property rights encompass respecting and protecting creations of the mind, such as inventions or branding. Example: A company copying a competitor’s patented technology or design.

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Corporate Tax Evasion

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Corporate tax evasion is the illegal non-payment or underpayment of taxes by businesses. Even legal tax avoidance can be an ethical dilemma if it involves immoral legal loopholes. Example: Transferring profits to low-tax jurisdictions to avoid paying taxes.

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Insider Trading

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Insider trading is the trading of a public company's stock or other securities based on material, non-public information about the company. Example: An executive buys or sells stock based on confidential information that will affect the company’s stock price.

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Product Safety

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Product safety ethical issues relate to the responsibility of companies to ensure their products are safe for consumers. Dilemmas arise when safety concerns conflict with profit goals. Example: Releasing a product known to have possible harmful effects.

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Conflict of Interest

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A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other. Example: An employee who makes decisions that could affect a business in which they have a financial interest.

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Data Protection and Privacy

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Data protection and privacy issues involve the obligation of companies to safeguard customer and employee data from misuse and unauthorized access. Example: Failing to implement strong cybersecurity measures that result in a data breach.

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Employee Privacy

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Employee privacy issues arise when companies must navigate the fine line between monitoring for security and respect for employees' personal privacy. Example: Excessive surveillance of employees’ work activities or communications.

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Health and Safety

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Health and safety ethical issues involve providing a workplace that protects the well-being of employees and mitigates occupational hazards. Example: Cutting costs by not providing adequate safety equipment or training.

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Fair Competition

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Fair competition principles are meant to ensure a level playing field within the market where no business has an unfair advantage. Ethical dilemmas arise with practices like price fixing or monopolizing. Example: Companies colluding to set higher prices.

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Harassment in the Workplace

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Harassment in the workplace involves unwanted, offensive, and intrusive behavior by an individual or group towards another. Example: Unwanted advances or verbal abuse based on personal attributes.

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Whistleblowing

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Whistleblowing occurs when an employee exposes information or activities within a private, public, or government organization that are deemed illegal, unethical, or not correct. Example: Reporting a company’s illegal waste management practices to the authorities.

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Diversity and Inclusion

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Diversity and inclusion issues involve ensuring diverse representation and inclusive practices within the company. Example: Implementing quotas for diversity that may overlook merit.

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